Chapter 12 - Managing Innovation and Fostering Corporate Entrepreneurship

Walmart has innovated to the top of global retail. Evolving from a small discount chain in North West Arkansas, to a global leader in retain, ecommerce and distribution. This has been made possible by consistent focus on innovation, which involves using new knowledge to transform organizational processes or create commercially viable products and services.

David Glass, Walmart CEO from 1988 - 2000 was credited in Walmart's initial innovations around technology. He focused on creating Retail Link System, a data stream that allowed instant sales numbers, store data, inventory, and even where Walmart truck were located via their own satellites. He also is credited with the Super Center and Automated Distribution Networks. Taking Walmart from $16 Billion to $165 Billion in annual revenue.

Walmart CEO David Glass 1988 - 2000

This innovation continues today as Walmart continues to invest in hyper automation in the distribution centers, innovative delivery systems like drones, and embracing Gen AI tools in all areas of Walmart's key business segments. One recent competitive win for Walmart over Costco, was the innovation of Scan and Go, an automated app experience that allows members to checkout on the go and skip the lines. This is a major investment focused on the key pillars of Walmart/Sams, always focused on the customer/member experience. In todays world this means consistent investment in automated pickup, robotics, and Gen AI to stay competitive with the likes of Amazon and other online retailers.

Walmart's strategy is to maintain scale but embrace entrepreneurship. This goes beyond technology, Walmart continues to push into new markets and evolve their workforce, launching Walmart Health, Marketplace, and other financial services.

Walmart proves that innovation and entrepreneurship are not just in startups. The constant focus on history and core principles, this way of organizational thinking, allows Walmart to evolve and continue to grow. It all goes back to the constant focus on delivering value to its customers.